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KBS Real Estate Investment Trust III
Closed On May 29, 2015
Distribution History
CASH DISTRIBUTION HISTORY*
PERIOD | MONTHLY DISTRIBUTION (Per Share) |
RECORD DATE | Annualized Distribution Amount |
June 24, 2011 – December 2018 | $ 0.00178082 | Daily | $0.65 |
January 2019 – December 2019 | $ 0.05416667 | Monthly | $0.65 |
January 2020 – December 2022 | $0.04983333 | Monthly | $0.60 |
January 2023 – June 2023 | $0.03833333 | Monthly | $0.46 |
SPECIAL DIVIDEND**
PERIOD | PAID IN CASH AND STOCK DISTRIBUTION (Per Share) |
RECORD DATE |
November 2019 | $0.80 | November 4, 2019 |
*Distributions paid through September 2023, excluding stock distributions issued in the Special Dividend, consisted of 55% paid in cash and 45% reinvested through the dividend reinvestment plan. KBS REIT III funded total distributions paid, which includes net cash distributions and dividends reinvested by stockholders, but excludes stock distributions issued in the Special Dividend, with 84% of cash flow from operating activities, 8% from debt financing and 8% with proceeds from asset sales. In addition, in connection with the December 12, 2019 Special Dividend payment, which was paid 35% in cash and 65% in stock, KBS REIT III issued $90.0 million in shares of common stock. For more information, please refer to KBS REIT III’s public filing. Because a portion of the distributions paid to date were paid with borrowings, distributions and the distribution rates referenced above may not be sustainable.
KBS REIT III’s charter permits it to pay distributions from any source, including offering proceeds or borrowings (which may constitute a return of capital), and does not limit the amount of funds it may use from any source to pay such distributions. If KBS REIT III pays distributions from sources other than cash flows from operating activities, it will have less funds available to make real estate investments and the overall return to its stockholders may be reduced.
In January 2023, KBS REIT III reduced the distribution rate from that of prior periods due to the continued impact of the economic slowdown on its cash flows. Commencing in July 2023, due to the illiquidity in the debt and capital markets and upcoming loan maturities, KBS REIT III further adjusted the timing and amount of stockholders distributions in order to be able to retain funds for future leasing needs in the portfolio. KBS REIT III has moved to quarterly assessments of distributions, and by the last month of each calendar quarter KBS REIT III will make a decision on the distribution amount (if any) to be paid to stockholders. KBS REIT III did not declare any distributions for the third and fourth quarter of 2023. For the reasons discussed in recent KBS REIT III third quarter filing, which has been filed with the SEC and available for review on their website, KBS REIT III is unable to predict when it will be in a position to resume the payment of regular distributions to its stockholders.
**On October 23, 2019, the board of directors of KBS REIT III authorized a Special Dividend in the amount of $0.80 per share of common stock payable in either shares of KBS REIT III’s common stock or cash to, and at the election of, the stockholders of record as of the close of business on November 4, 2019. If stockholders elected all cash, their election was subject to adjustment such that the aggregate amount of cash distributed by KBS REIT III was a maximum of 35% of the total Special Dividend, with the remainder paid in shares of common stock. The Special Dividend was paid on December 12, 2019 to stockholders of record as of the close of business November 4, 2019. KBS REIT III paid $48.5 million (35%) in cash and issued $90.0 million (65%) in stock pursuant to the Special Dividend.